Agglomeration and Innovation

Forthcoming in Handbook of Regional and Urban Economics, Vols. 5A and 5B

FRB of Philadelphia Working Paper No. 14-26

62 Pages Posted: 12 Sep 2014

See all articles by Gerald A. Carlino

Gerald A. Carlino

Federal Reserve Bank of Philadelphia

William Kerr

Harvard University - Entrepreneurial Management Unit

Multiple version iconThere are 3 versions of this paper

Date Written: August 2014

Abstract

This paper reviews academic research on the connections between agglomeration and innovation. The authors first describe the conceptual distinctions between invention and innovation. They then discuss how these factors are frequently measured in the data and note some resulting empirical regularities. Innovative activity tends to be more concentrated than industrial activity, and the authors discuss important findings from the literature about why this is so. The authors highlight the traits of cities (e.g., size, industrial diversity) that theoretical and empirical work link to innovation, and they discuss factors that help sustain these features (e.g., the localization of entrepreneurial finance).

Keywords: Agglomeration, Clusters, Innovation, Invention, Entrepreneurship

JEL Classification: J2, J6, L1, L2, L6, O3, R1, R3

Suggested Citation

Carlino, Gerald A. and Kerr, William R., Agglomeration and Innovation (August 2014). Forthcoming in Handbook of Regional and Urban Economics, Vols. 5A and 5B; FRB of Philadelphia Working Paper No. 14-26. Available at SSRN: https://ssrn.com/abstract=2494403

Gerald A. Carlino (Contact Author)

Federal Reserve Bank of Philadelphia ( email )

Ten Independence Mall
Philadelphia, PA 19106-1574
United States
215-574-6434 (Phone)
215-574-4364 (Fax)

William R. Kerr

Harvard University - Entrepreneurial Management Unit ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

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